Trying to learn

Now don't take that I'm all about owning a truck.All your doing is buying a job.I understand that a lot of drivers dream is being an O/O and I know a lot want to try and I know about and believe in talking chances in life sometimes.dont know how much your making now but as a one truck O/O to clear over $70,000 is a challenge.Some its is a good choice buying a job depends a lot on where you live and available jobs in that area. If you live where you can gain employment and gross over $70,000 and a full benefit plan and retirement plan and home on a regular base. You would be better off working as a company driver then buying a truck. If you want to own thinking your making more money it's often not the case.

 

First,.. do not look at trucks until you know where and what kind of freight and what trailer you will be pulling if you plan is to lease on. You need to choose a truck that is spec'd correctly for the job it will be doing.

Second,.. stay away from companies that pay CPM. You want to be paid on percentage of the gross line haul and you want to see the actual rate/con before you ever head out to pick up said load.

You need to know where and how your money will be coming in before buying that truck. Be smart about this and think it through.

Hurst

 

It's all conjecture until you run the numbers, look at the interest rates, and get the complete picture. In my private and business ventures, I pay cash when the numbers make sense.

Rather than pay the bank 8-10% interest, I'd rather put that money in my pocket. On a $100K piece of equipment, that's a very significant savings when you look at it over a 10 yr time period. If we're talking about real estate and 3% interest, then yes, it's good to carry that debt but once you get into the double digit interest, that's when it's time to take a hard look.

When running the numbers, don't look at the payment without paying attention to the interest....by playing with the timeline of repayment, I can manipulate the payment a considerable amount.

I agree on what you're saying about buying a used truck, it's a sound business plan to set aside enough for catastrophic repairs, or at the least have a line of credit (with reasonable interest rates) available with an already thought about repayment plan should you have to use it.